MEC Mining partners with Metro Mining to deliver a positive result for the Bauxite Hills Bankable Feasibility Study

Metro Mining today announced the completion of the Bankable Feasibility Study (BFS) for the Bauxite Hills Mine, confirming strong financial returns from the project and demonstrating the benefits from acquiring Gulf Alumina Limited (Gulf).

The BFS was completed by MEC Mining, an independent and highly reputable mining consultancy firm, in partnership with Wave International, a consulting firm specialising in the execution of engineering, project delivery management and asset management services across Australia and overseas.

MEC provided specialist support services to the BFS in the following areas:

  • Mine planning;
  • Cost modelling;
  • Study completion.

Key financial results of the BFS include:

  • Initial capital cost of A$35.8 million (including 10% contingency);
  • Average annual EBITDA of A$145 million;
  • After tax NPV10 of A$601 million;
  • After tax IRR of 81%;
  • Life of mine revenue of A$5.7 billion and life of mine EBITDA of A$2.5 billion.

There is a 17-year initial mine life with production to commence in April 2018 at an initial rate of 2Mtpa, ramping up to a steady state 6Mtpa over the first four years.

Simon Finnis- Metro Mining Managing Director commented:

Simon Finnis “
The completion of the Bankable Feasibility Study is an enormous achievement for the company and a testament to MEC, Metro’s project team and the quality of the project. The BFS also confirms the benefits of acquiring Gulf allowing one integrated development plan across both asset bases. We look forward to moving into the construction phase in mid-2017 once all environmental approvals have been received and funding secured”.

For more information, read the full Metro Mining ASX announcement at: